IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v99y1989i396p443-53.html
   My bibliography  Save this article

North-South Growth and the Terms of Trade: A Model on Kaldorian Line s

Author

Listed:
  • Molana, Hassan H
  • Vines, David A

Abstract

This paper examines equilibrium growth and stability in the world economy using a North-South model in which there is assumed to be surplus labor in both the North and South at an exogenously-determined level of real wages. The model allows for substitution in consumption between primary commodities and industrial goods in the North, and treats the cases of both surplus and scarce land in the South. In the case of an exogenous shock to the model, the North-South terms of trade may overshoot its equilibrium value and/or converge to this value along a cyclical path. There is no guarantee that the adjustment path is stable. Copyright 1989 by Royal Economic Society.

Suggested Citation

  • Molana, Hassan H & Vines, David A, 1989. "North-South Growth and the Terms of Trade: A Model on Kaldorian Line s," Economic Journal, Royal Economic Society, vol. 99(396), pages 443-453, June.
    • Handle: RePEc:ecj:econjl:v:99:y:1989:i:396:p:443-53
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0133%28198906%2999%3A396%3C443%3ANGATTO%3E2.0.CO%3B2-9&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hiroaki Sasaki, 2011. "Trade, Non‐Scale Growth And Uneven Development," Metroeconomica, Wiley Blackwell, vol. 62(4), pages 691-711, November.
    2. A.P. Thirlwall, 2018. "Una vita nell’economia," Moneta e Credito, Economia civile, vol. 71(283), pages 179-210.
    3. Chris Allen & David Vines, 1993. "Should Clinton Cut the Deficit or is there a Global Paradox of Thrift?," The World Economy, Wiley Blackwell, vol. 16(2), pages 133-158, March.
    4. Thomas, Ziesemer, 1998. "A History of Economic Theorizing on the Prebisch-Singer Thesis," MPRA Paper 60502, University Library of Munich, Germany.
    5. Ziesemer, Thomas HW, 1994. "Economic Development and Endogenous Terms-of-Trade Determination: Review and Reinterpretation of the Prebisch-Singer Thesis," MPRA Paper 54864, University Library of Munich, Germany.
    6. Ziesemer, Thomas, 1995. "Growth with imported capital goods, limited export demand and foreign debt," Journal of Macroeconomics, Elsevier, vol. 17(1), pages 31-53.
    7. Bilge Erten, 2010. "Industrial Upgrading and Export Diversification: A Comparative Analysis of Economic Policies in Turkey and Malaysia," Working Papers id:2778, eSocialSciences.
    8. Hiroaki Sasaki, 2008. "North-South Asymmetry in Returns to Scale, Uneven Development, and the Population Puzzle," TERG Discussion Papers 238, Graduate School of Economics and Management, Tohoku University.
    9. Ros Jaime, 2013. "Latin America’s Trade and Growth Patterns, the China Factor, and Prebisch’s Nightmare," Journal of Globalization and Development, De Gruyter, vol. 3(2), pages 1-16, March.
    10. Amitava Krishna Dutt, 2002. "Thirlwall’s Law and Uneven Development," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 24(3), pages 367-390, March.
    11. Sasaki, Hiroaki, 2018. "North-South Trade and Uneven Development in a Classical Conventional Wage Share Growth Model," MPRA Paper 88631, University Library of Munich, Germany.
    12. José Antonio Ocampo & María Angela Parra, 2004. "The commodity terms of trade and their strategic implications for development," International Trade 0403001, University Library of Munich, Germany.
    13. William Darity & Lewis S. Davis, 2005. "Growth, trade and uneven development," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(1), pages 141-170, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:99:y:1989:i:396:p:443-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.